An amendment has been submitted to parliament to repeal the requirement that foreign tour operators and travel agents pay Tourism Goods and Services Tax on commissions earned from selling Maldivian tourism products.
The original measure, introduced under the destination principle, came into force only days before the government signalled its intention to reverse it. Tourism Minister Mohamed Ameen announced the decision after industry stakeholders and international agents expressed concern that the tax amounted to double taxation and could lead some operators to reduce or suspend sales of Maldives packages.
President Mohamed Muizzu directed the change following representations from major travel companies. The Maldives Association of Travel Agents and Tour Operators welcomed the move.
The government had projected that taxing foreign operators would generate additional revenue of around MVR 1.6 billion annually. The rapid reversal follows similar pushback over the speed of implementation and the absence of a transition period.
